NFT Whitelist: Benefits and Drawbacks, and How Can You Join In?

• By Gunaseelan Arunachalam
• 23-03-2023
• Technology

NFTs have grown in popularity in recent years. Investors compete for a piece of the collection in NFT Marketplace development when a new NFT project is launched. This frequently causes chaos and may even result in scams around the time of the project's launch.

In light of this, well-known NFT projects have developed a new mechanism to make their collections accessible to audiences. It is known as a "whitelist." Let's take a look at what an NFT whitelist is and how you can get on these exclusive pre-sale lists. Let's get started!

What is NFT Whitelist ?

Whitelisting is a cybersecurity concept that refers to approving a list of IP addresses, email addresses, and applications while rejecting all others. That being said, it relates to granting special rights and access to a specific object.

Non-Fungible token allowlists are a list of wallet addresses with exclusive minting rights in the NFT space, ensuring the ability to mint one or more NFTs before their scheduled general public release, often at a lower cost.

A pre-mint allows community members and early backers an opportunity to mint before the public sale begins, usually through a mint pass or an allowlist. In contrast to an allowlist, a mint pass requires payment to mint a specific number of NFTs prior to the general sale.

How do NFT whitelists work?

Early access to newly minted non-fungible tokens is provided after compiling all digital wallet addresses. A potential buyer's first step is to have their address approved for whitelisting. Because they want their NFTs to be accessible to loyal fans and early backers, most projects check the accounts of users before adding them to the whitelist.

When a wallet address is added to the NFT whitelist, the date and time for the token's minting are provided. Although time slots for each project differ, many allowlists offer a two-day window. After waiting for the specified date, users will be able to access their accounts at the specified time and mint an NFT as agreed upon.

Why is an NFT Whitelist necessary ?

The following reasons will explain why an NFT whitelist is required. Consider the following points:

1. Giving early supporters incentives

Since NFT projects typically take a long time to develop, they require a lot of early buzz to build momentum and ensure a successful launch. During the ideation stage, when a project is only in the minds of its creators, social media allows for early marketing and community building. The initial supporters of a project are usually the ones who aid in the development of the idea. And it's vital to reward them in order to generate support for the project.

2. It prevents gas wars

Since general NFT sales do not need to be whitelisted, a large number of concurrent users interacting with the smart contract can result in a significant increase in transaction fees. Users compete to have their minting transactions approved first, resulting in higher gas prices and what we refer to as "Gas Wars."

On the other hand, whitelist registration restricts the wallet addresses that can mint NFT prior to the general sale. This means that network congestion and gas wars will be less likely during the sale. Setting a time limit on the number of NFTs that can be issued is one of the most effective strategies for whitelists to reduce gas price issues. It's essential to remember that the gas price will fluctuate based on the overall volume of traffic on the blockchain network. Other minting sales or external factors may occasionally have an impact on a whitelist sale. If there is a high desire to join the whitelist, it generates discussion and interest around the release, project, and future follow-up releases, which is a valuable addition to the whitelisting approach for NFT projects.

3. Reduces the rate of scams

Thousands of genuine buyers can hinder a new launch, but spam accounts exacerbate the problem. Several projects are being swamped with pre-sale requests from fraudulent crypto wallets and bogus accounts. Certain malicious attackers can register hundreds of accounts at once. Whitelists keep this type of activity from interfering with the minting process.

Using an NFT whitelist helps to avoid mass registrations. Furthermore, it prevents spam from non-whitelisted addresses. As a result, the virtual environment becomes cleaner and healthier, allowing the NFT project to focus on real customers who are ecstatic about the new tokens that are being issued.

Benefits of NFT Whitelist

Whitelists provide numerous benefits to investors, collectors, and project creators. For example, allowing devoted fans to mint NFTs before the general public can avoid a gas war. Furthermore, being on the whitelist results in a lower mint price than the public mint price.

This means that users on the whitelist will have a free time slot to complete their purchase, and they will be able to spend more money on actual NFT purchases as they will save on gas fees. Collectors may also be rewarded with airdrops if they can mint a high-value NFT project.

Drawbacks of NFT Whitelist

Getting on a whitelist takes time, so it requires consistent participation on the project's Discord server and other social media pages. However, if the project fails to gain traction, it may not be added to the whitelist.

Additionally, scammers might conduct a phishing attack to entice investors to click on random links. As a result, users should take caution and communicate only with authorised project representatives. Furthermore, unpopular NFTs may become illiquid assets that are difficult to sell on the secondary market. So, before minting non-fungible tokens, always conduct your own research and only put money up if you are confident in the project's future.

How can you join an NFT Whitelist?

Contributing to a project through its Discord server, Twitter, Telegram group, and so on, can help one gain the attention of the project's founders and get added to the whitelist. The following are the fundamental steps to becoming whitelisted for NFTs:

• Search for an NFT project before it launches

The majority of NFT initiatives seek community members who can help raise awareness and reward participants in the early stages. To keep up with the latest trends, one can search for projects on Twitter and YouTube or use platforms like Rarity.tools.

• Join the Discord server for the NFT project

After you've decided on a project, join its Discord server to interact with other members and contribute to its development. Additional useful information, such as the project's founders' backgrounds, roadmap, and most recent announcements, can be found on the server and used to assess the project's credibility before joining the whitelist.

• Follow the instructions to get whitelisted

The application process for joining a whitelist varies by project. To join an allowlist, follow the instructions provided by your chosen project. After you've met the requirements, you'll need to provide your cryptocurrency wallet address, which, if accepted, will grant you access to the whitelist. After being added to the whitelist, instructions will be provided to you. You will be assigned a time slot to mint your token after being added to the whitelist.

How can you identify an NFT Whitelist scam ?

Since the NFT industry is still in its infancy, scammers use deceptive methods to drain funds from victims' wallets. As a result, being aware of certain warning signs can help you stay safe. As previously stated, getting whitelisted entails a few simple steps. If a project representative or a random user requests a bribe to get your name on the whitelist, it is a scam because genuine nonfungible token creators do not have control over their community.

Furthermore, if you are asked to share your private key or bank details in order to be added to the allowlist, consider this a red flag and do not share such information. Moreover, if you received an email, text message, or phone call from an untrustworthy source regarding your selection for the whitelist, do your research before committing funds to the project. Only official links posted to the project's Twitter, Telegram, or Discord channels should be trusted in the NFT whitelist.

How to improve your chances of being included on the NFT Whitelist

Even if you follow all of the above steps, there is no guarantee that you will be added to a project's whitelist. Popular tokens are frequently in high demand, and you're competing for a spot with other supporters. To increase your chances of making the list and receiving early access to the tokens, you must show your support for the group.

In essence, you must have shown the founders that you are contributing to the overall success of the project. This necessitates interaction with other users and promotion of upcoming tokens in prominent digital spaces. With the right set of strategies, you can demonstrate your value to a project and increase your chances of landing on the NFT whitelist of your dreams.

• Stay active participation

Many NTF projects aim to create an active online community. If you want to attract the founders' attention, contribute as much as you can to this nascent in-group. On the Discord server, you can chat with other users. On your personal account, tweet about the most recent developments. To show your genuine interest in the project, ask meaningful questions. These actions will be noticed, and the founders will appreciate the time you put into the project.

• Achieve More Supporters

Every NFT founder wishes to increase the number of supporters and buyers for their project. If you can assist with these efforts, you will undoubtedly gain the appreciation of those in charge.Spend some time promoting the token in question on other Discord servers, always doing so in the "shill" chat room that is designated for this purpose. While this type of direct marketing may take some getting used to, it will go a long way towards endearing you to the NFT ecosystem's decision-makers.

• Take part in giveaways

Many projects use giveaways to promote themselves on social media, offering places on their whitelists in exchange for free promotion. To enter these giveaways, simply retweet or share the information as directed. You might not get on the whitelists, but you can increase your chances by entering as many giveaways as possible.

• Join as soon as possible

When an NFT project is just getting started, the founders are desperate to draw attention to the tokens and generate some buzz. This increases their willingness to provide easy access to the NFT whitelist. As the project progresses, the demand for whitelist spots grows, making it more difficult to obtain one. As a result, as an investor, you should seek out exciting projects as soon as possible. If you find a project that is just getting started online, you can probably get on the whitelist and gain early access to tokens.

Is it worth getting on the NFT Whitelist ?

Getting whitelisted takes a lot of work, including investigating NFT presales, contrbuting to NFT projects on a regular basis, and engaging with project team members. However, since each project or platform has different selection criteria, one may still fail to be whitelisted.

Regardless, the opportunity to gain early access to intriguing initiatives is usually worthwhile, as NFTs can be purchased at a low cost while avoiding costly gas wars and secondary market trades. Furthermore, users can use whitelists to supplement their investment portfolio if they have a good plan and are willing to put in the effort.

Closing words

The most anticipated tokens are made available to traders early due to NFT whitelists. You can avoid gas wars and get tokens for a lower overall price by using this simple method.

If you're serious about investing in non-fungible tokens, there's no better way to increase your potential earnings and immerse yourself more in the world of NFTs than by joining a whitelist. If you have a good plan in place and are willing to put in some effort, you can use whitelists to supplement your investment portfolio.